FirstBank Nigeria, one of the leading financial institutions in Africa, screened over N10tn (approximately $24.5 billion) in corporate transactions for Environmental, Social, and Governance (ESG) risks in 2025, more than double the number assessed in the previous year. This development underscores the bank's commitment to integrating sustainability into its credit and risk management processes.

The increased focus on ESG risks aligns with global initiatives such as the Task Force on Climate-related Financial Disclosures (TCFD), the Sustainability Accounting Standards Board (SASB), and the United Nations Sustainable Development Goals (UN SDGs). By incorporating ESG considerations into their lending standards, banks like FirstBank are helping to address emerging environmental and social risks, create new sources of revenue, and preserve trust among customers, regulators, and communities.

For investors, this development represents an opportunity to engage with a financial institution that is proactively addressing ESG risks in its lending portfolio. Regulators can leverage this commitment from FirstBank as a model for other financial institutions in Nigeria to follow suit. Communities, particularly those involved in sectors such as construction, oil and gas, agriculture, manufacturing, and services, may benefit from increased transparency and accountability as a result of FirstBank's ESG risk assessment process.

However, challenges remain. The financing gap for clean energy transition in Nigeria is still significant, and banks have a critical role to play in mobilizing capital towards cleaner energy and mobility solutions. FirstBank's expansion of climate finance offerings is a step in the right direction but more needs to be done to bridge the gap.

In terms of environmental impact, the bank's commitment to measuring financed emissions and identifying areas of portfolio vulnerability as Nigeria moves towards a lower-carbon economy is commendable. However, the success of these initiatives will depend on the bank's ability to effectively implement and enforce its Green Product Credit Policy and Environmental and Social Action Plans.

Overall, FirstBank's significant increase in ESG risk screening is a positive development for sustainable finance in Nigeria. It demonstrates the bank's commitment to integrating sustainability into its business strategy and could serve as a catalyst for other financial institutions in the region to prioritize ESG considerations in their lending practices.